Posted on 04/02/2018 11:39:59 AM PDT by SeekAndFind
Trade war fears and a presidential attack on Amazon are rocking Wall Street. The Dow dropped more than 700 points and the Nasdaq plunged 3% on Monday. All three major indexes are now in the red for the year.
The sell-off on the first day of the second quarter came after President Trump once again attacked Amazon on Twitter. Amazon (AMZN), one of the biggest drivers of the 2017 market rally, tumbled 5%, wiping out more than $37 billion of its market value.
Trump once again accused Amazon of taking advantage of the US Postal Service, and he suggested that Amazon does not pay its fair share of tax.
In fact, Amazon pays the same lower rate that the post office charges other bulk shippers, and it collects sales tax in every state that charges it. Amazon does not collect sales tax on purchases made from third-party vendors.
"You've got the president of the United States attacking a single company over what he considers to be unfair practices," said Ian Winer, head of equities at Wedbush Securities.
Amazon wasn't the only tech stock in trouble. Tesla (TSLA), Netflix (NFLX) and Cisco (CSCO) all dropped by at least 4%. Intel (INTC) plunged 8% on a Bloomberg News report that Apple plans to switch to its own chips. Almost every stock in the Nasdaq 100 lost ground.
The Nasdaq has plunged more than 10% from its all-time high on March 12.
"When investors see market leaders suddenly stumble, they become more cautious about the entire group," said Kate Warne, investment strategist at Edward Jones.
(Excerpt) Read more at money.cnn.com ...
If every business only had private investors, if they are successful the private investors would be the only ones to profit. If the business goes public and stock is sold, they will have the capital to expand their business and the stockholders, many of which are retirement accounts, allow many people to profit if the business is successful. Not all businesses are successful, but capitalism is a much better system than others.
Market manipulators, politicians and the media thrive on spreading FUD (fear, uncertainty and doubt) issues that make headlines that they can use to make gains in their own self interests.
USPS overtime is paid at 2X pay, not time and a half.
I was just putting out the facts to all, not correcting you. Their UNION contract calls for 2X pay for OT, so I am sure the Sunday service is subsidized by the taxpayers.
I blame the USPS more than Amazon as they AGREED to the rates and service.
Ohh that worked out well
You could have capitalism without a stock market.
If you pay attention, I draw a distinction between playing in the market and investing.
Close -- 389.
-PJ
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